What to do with 3 layers of flooring...

So, we have this new rental we just bought and are doing a remodeling, adding a master suite. We were thinking of tiling over the kitchen floors but realized there was quite a transition area where the kitchen floor was much higher than the main wooden floors. Basically there are 3 layers of vinyl over the hardwood floors. The lip transitioning can't take much higher, would be a small step.

So, I am thinking my options are:
-get all this mess removed which would be $1000 PLUS cost of tiling over.
- try to strip it to the hardwood to maybe refinish it IF it doesn't get too damaged.
- Not do anything
- Add a layer of new vinyl
- add those click and go vinyl board adding only 6mm but still being high

Any other ideas? Like a way to make a smooth slope transition into the two hallways it connects to that are the original hardwood?